Global stock markets were mixed on Monday following massive slides at the back end of last week while bonds continued to slide on Monday, “reflecting worry that global central banks will have to accelerate policy tightening after UK tax cuts fuelled concern about government spending,” reports Bloomberg.
The JSE closed 0.33% higher with the All Share Index at 63,626 points. Naspers and Prosus lent support to the local bourse, adding 6.08% and 4.59% respectively while Tigerbrands also closed 10.43% up.
The picture is gloomier in the currency markets after the rand crashed through the R18.00/$ level and was trading at R18.11 against the greenback at one point during the morning session. The local unit last broke through the R18.00 mark back in May 2020 but it clawed back some of those losses and is currently trading at R18.06 with the dollar up 0.59% against the local unit.
The pound dropped to an all-time low against the dollar this morning as spooked investors ran towards the safe haven greenback after tax cuts in Chancellor of the Exchequer Kwasi Kwarteng’s mini-budget undermined confidence in the UK.
The Bank of England has signalled it may make a statement today, which has helped the pound recover from its all-time low versus the dollar.
